RajaLeaks obtained the financial statement of the TMO offshore company Maharishi Vedic University Limited. Among the company’s directors are Dr. Tony Nader – also known as Antonie Nader – Raja Luis, Neil Paterson, Rafael David, Penelope Suzan Harmel, Steven Rubin and members of the Maharishi family: Ajay Prakash Shrivastava, Kirti Shrivastava, and Ram Shrivastava. According to the financial statement, the offshore company reduced its tax base with substantial administrative costs: in the 2020 financial year, it reported revenue of 493,621 euros alongside administrative costs of 511,273 euros. In the 2021 financial year, with revenue of 561,526 euros, they recorded administrative costs of 470,931 euros. The report includes the company’s general information, directors’ responsibilities, income statement, balance sheet, notes to the financial statements, and an independent auditor’s report. It details the company’s financial performance for the year ending December 31, 2021, including its revenues, expenses, assets, liabilities, and equity. The report also notes that the company’s total liabilities exceeded its total assets, raising concerns about the company’s ability to continue as a going concern.
Related Party Revenue in 2021
In 2021, Maharishi Vedic University Limited generated €561,526 in revenue from course fees paid by a related party.
The specific related party is not named in the financial statements. However, Note 6.2 of the financial statements mentions substantial amounts due to the parent company and related companies, totaling €1,764,022 in 2021. These amounts are unsecured, interest-free, and repayable on demand.
This suggests that the parent company or other related companies could be the source of the course fee revenue, although the sources do not explicitly confirm this.
Going Concern Concerns at Maharishi Vedic University Limited
The company’s financial position raises significant concerns about its ability to continue as a going concern.
- The independent auditor’s report explicitly states that there is material uncertainty related to the company’s ability to continue as a going concern.
- This uncertainty stems from the fact that, as of December 31, 2021, the company’s total liabilities exceeded its total assets by €458,279. This means the company has a negative net worth, indicating a precarious financial situation.
- The auditor’s report emphasizes that the company’s financial statements have been prepared using the going concern basis of accounting. This means that the financial statements assume the company will continue to operate in the foreseeable future. However, the auditor highlights the material uncertainty surrounding this assumption.
- Note 1 in the financial statements acknowledges the company’s accumulated losses, which have fully eroded the corporate capital. This further reinforces the concerns about the company’s financial stability.
- While the shareholders have pledged their assistance to ensure the company can meet its liabilities, the auditor still expresses reservations about the going concern assumption. This suggests that the shareholders’ support might not be sufficient to alleviate the concerns.
In conclusion, the auditor’s report and the company’s financial statements paint a concerning picture of Maharishi Vedic University Limited’s financial health, raising serious doubts about its ability to continue operating as a going concern.
The company’s revenue increased by €67,905 from 2020 to 2021.
- In 2020, the company reported revenue of €493,621
- In 2021, revenue rose to €561,526
- This represents a growth rate of approximately 13.7%
Amount of the loan received from the parent company in 2021
This revenue was primarily generated from course fees paid by a related party. The specific related party is not identified, but it could be the parent company or another related company The financial statements for Maharishi Vedic University Limited show that the company received a loan of €110,000 from its parent company in 2021. The note specifies that the loan was received for “financing” purposes but does not provide details on the loan’s terms, such as interest rate or repayment schedule. It also does not name the parent company.
The percentage of depreciation applied annually to the company’s furniture and fittings
The sources state that Maharishi Vedic University Limited applies a 70% annual depreciation rate to its furniture and fittings. This information is found in Note 2.1, which outlines the company’s significant accounting policies for equipment.
The note specifically states:
The rates of depreciation used for other items equipment are the following:
- Office equipment -25% per annum straight line
- Furniture and fittings -70% per annum straight line
This means that the company uses the straight-line method to depreciate furniture and fittings. This method evenly spreads the cost of an asset over its useful life. In this case, each year, 70% of the value of the furniture and fittings is expensed as depreciation.
A 70% depreciation rate is relatively high, suggesting that the company expects its furniture and fittings to have a short useful life. This could be because the furniture and fittings are subject to heavy wear and tear or become obsolete quickly.
Here is the Document of Vedic Morality and the Realization of Tax Heaven
https://rajaleaks.org/wp-content/uploads/2024/11/C-55529_C_55529_D37_0-1.pdf